Provinces to receive majority of cannabis revenue

December 12, 2017

The federal government has agreed to give the provinces 75 percent of the revenue from cannabis sales. This agreement was made after a meeting with Canada’s Finance Minister Bill Morneau and his provincial counterparts on Monday. A portion of this will also be allocated to municipalities to assist in the costs of cannabis legalization across Canada.

Provincial finance ministers predict that cannabis legalization will involve significant start up costs, which may include additional enforcement, public-awareness campaigns, and storefront locations. It is estimated that cannabis legalization will bring in approximately $400 million in revenues in the first two years, and is expected to grow.

CMHA Ontario is pleased that Ontario will be receiving 75 percent of the revenue from recreational cannabis sales in the province. CMHA Ontario includes recommendations for revenue allocation in our policy paper Cannabis Legalization and Regulation. We continue to encourage Ontario to commit to investing the revenue in the mental health and addictions sector in order maintain the commitment to a public health approach to cannabis legalization and regulation.